European debt crisis talks plunged into chaos as leaders announce another summit: Plans to "decisively address" the debt crisis this weekend were plunged into chaos on Thursday night as European leaders were forced to announce another "summit" next week amid political deadlock between France and Germany.
"The first summit starts on Friday afternoon with a meeting of finance ministers. Stephen King, chief economist at HSBC, said: "Keeping the eurozone together will involve huge financial resources and considerable ingenuity. The alternative would be worse. We argue that a break-up of the euro would be a disaster, and in a worst-case scenario could trigger another Great Depression.""
What's going on?--Germany (the economic engine of Europe) has slowed to stall speed (opposition to the bail-out plans was reinforced when Germany's growth forecast for next year was cut to 1% down from a previous 1.8%) and its politicians want accountability and transparency--Germany's leaders were grappling with a rebellion from politicians who make up Mrs Merkel's coalition. They have demanded details of the EFSF plans or they will withdraw Mrs Merkel's mandate to negotiate. They also wanted full sight of the troika's latest report on Greek finances.
It remains to be seen whether France can sweet-talk Germany into co-signing the loans to bail out Greece and the rest of Europe.
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